Minimum Wage Fixing Convention, 1970 (No. 131) - Mexico (RATIFICATION: 1973)

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In order to provide a comprehensive view of the issues related to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine the application of Conventions Nos 131 (minimum wage) and 95 (protection of wages) together.

The Committee notes the observations of the Regional Confederation of Mexican Workers (CROM) and of the Confederation of Workers of Mexico (CTM) on the application, respectively, of Conventions Nos 131 and 95, communicated jointly with the Government’s reports.

Article 3 of Convention No. 131. Elements to be taken into consideration in determining the level of minimum wages. The Committee notes, that the CROM indicates, in its observations, that although minimum wages have been increased, they are not aligned to the increased rate of inflation and therefore are not sufficient to meet the needs of a small family. In this regard, the Committee notes the Government’s indication in its report that the amendment to section 90 of the Federal Labour Act (LFT), adopted in 2021, provides that minimum wages, or their adjusted rates, shall never be below the inflation recorded in the period taken into account. In light of this information, the Committee expects that at the next adjustment of minimum wages, so far as possible and appropriate in relation to national practice and conditions, account will be taken of both the needs of workers and their families, and of economic factors, as provided by Article 3 of the Convention.

Article 8 of Convention No. 95. Deductions from wages permitted under conditions and to the extent prescribed. The Committee notes that the CTM indicates in its observations that although the majority of employers effect payment of wages to their workers, in the informal sector, occasionally, workers receive wages with deductions that are not considered to be within the law. While noting that the Government has not responded to these observations, the Committee recalls that, in conformity with Article 8(1) of the Convention, deductions from wages shall be permitted only under conditions and to the extent prescribed by national laws or regulations or fixed by collective agreement or arbitration award. The Committee requests the Government to provide its comments in this regard.

Article 5 of Convention No. 131 and Article 15(b) of Convention No. 95. The Committee notes the Government’s indication in reply to the Committee’s earlier comments that the alternative monitoring mechanisms, other than the labour inspectorate, provided under sections 46 and 47 of the General Regulations on Labour Inspection and the Application of Penalties, issued in 2014, are not used to verify compliance with provisions regarding wages, including minimum wages, but solely for the purpose of assuring compliance with general occupational safety and health conditions. The Government also indicates that it plans to launch the “Distintivo de Trabajo Digno” mechanism in 2021, which will recognize workplaces that can show compliance with the provisions of the LFT, including those relating to wages in general and to minimum wages in particular. The Committee requests the Government to provide detailed information on the implementation and operation of the “Distintivo de Trabajo Digno” mechanism, specifying the manner in which supervision is ensured over the effective application of the provisions relating to wage protection and minimum wage under Conventions Nos 95 and 131, respectively. It further requests the Government to continue to provide information on the measures taken by the labour inspectorate relating to minimum wage and the results achieved. Finally, the Committee requests the Government to provide information on the activities carried out by the Secretariat for Labour and Social Welfare in the area of wage protection, following the assignment in 2019 of the functions and powers of the Joint National Committee on Wage Protection, whose decree of creation was repealed that year.

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In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 131 (minimum wage) and 95 (protection of wages) together.

Minimum wage

Articles 1 and 3 of Convention No. 131. Minimum wage system. Criteria to be taken into account in the fixing of minimum wage levels. In relation to its previous comments, the Committee notes the information provided by the Government in its report regarding the general minimum wage and the occupational minimum wages, particularly on: (i) the decisions issued by the Council of Representatives of the National Minimum Wage Commission (CONASAMI) making adjustments to those minimum wages between 2012 and 2017; (ii) the two special increases to the general minimum wage implemented in 2017, one known as the “independent recovery sum” (MIR), and another additional increase of 3.9 per cent (also applicable to occupational minimum wages); and (iii) the objective of the MIR, which is to contribute to restoring the purchasing power of the general minimum wage.

Monitoring system

Article 5 of Convention No. 131 and Article 15(b) of Convention No. 95. In relation to its previous comments, the Committee notes the information provided by the Government regarding the measures taken by the labour inspectorate relating to the minimum wage, the results achieved between 2013 and June 2017 regarding the annual work plans of the CONASAMI Technical Directorate for the years 2012 to 2017, and the activities carried out by the Joint National Committee on Wage Protection between 2012 and 2017. The Committee also notes that sections 46–47 of the general regulations on labour inspection and the application of penalties, issued in 2014, provide that: (i) the labour authorities may monitor compliance with the provisions of labour law through alternative mechanisms to labour inspections, which could be, inter alia, operational warnings, questionnaires, evaluations, or similar requests to provide the required information made to employers or their representatives, workers or their representatives and the members of the committees set out in the Federal Labour Act; and (ii) the labour authorities shall provide information, in the Official Gazette or the publications of the federal bodies, as appropriate, on the alternative mechanisms to labour inspection that they are implementing. The Committee requests the Government to provide information on the manner in which the alternative mechanisms to labour inspection are applied in practice, especially in relation to the monitoring of the application of the provisions on wages in general and minimum wages.

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Articles 1 and 3 of the Convention. System of minimum wages – Periodic review and adjustment of minimum wages. The Committee notes the detailed information provided by the Government regarding the evolution of minimum wage rates in the period 2007–12, the working methods of the National Minimum Wage Commission (CONASAMI) for the annual revision of the minimum wage, and the possible improvements in the minimum wage-fixing process currently under consideration.

In particular, the Committee notes that the general minimum wage applicable as from 1 January 2012 was 62.33, 60.57 and 59.08 Mexican pesos (MXN) (approximately US$4.8, 4.7 and 4.6 respectively) a day in the three geographical areas of the country, while higher occupational minimum wage rates have been determined for 70 categories of workers. In addition, the Committee notes that the Technical Directorate of CONASAMI is responsible for conducting appropriate studies and analyses to allow the Council of Representatives of CONASAMI to fix minimum wages. To this end, the Technical Directorate examines variations in the cost of living, looking at family needs, either material (e.g. housing, food, clothes and transport), social and cultural (e.g. sports or attending to cultural activities) or needs related to the education of children.

According to the Government’s report, CONASAMI takes also into consideration studies and reports presented by workers’ and employers’ organizations, and makes a balanced analysis of the economic situation on the basis of indicators such as the price index, productivity and employment, the public finances, monetary and financial policy, balance of payments, oil market, tourism, foreign investment and external debt. As regards the ongoing work of the Advisory Committee for the Modernization of the Minimum Wage System, the Committee notes the information that among the changes that are being envisaged is the possible replacement of the three regional minimum wage rates by a single generally applicable minimum wage, and the discontinuation of using the minimum wage as a reference for the calculation of various benefits, contributions and fines.

The Committee notes that minimum hourly wages, as percentage of the average wage, are the lowest among OECD countries representing less than 20 per cent of the average wage. The Committee also notes that, according to a study of the National Autonomous University of Mexico (UNAM) published in August 2012, the purchasing power of the minimum wage fell by 79 per cent in the last 25 years and by 43 per cent between 2006 and 2012. A similar observation is made in the ILO’s 2011 Labour Overview. The Committee also notes that, according to the abovementioned UNAM study, the minimum wage appears to cover at present approximately 34 per cent of the basic food family basket (canasta alimenticia recomendable). The Committee finally observes that according to the 2012 National Labour Force Survey, approximately 7 million out of 48 million employed persons – or more than 14 per cent of the total workforce – earn “up to one minimum wage”. Recalling that the fundamental purpose of minimum wage fixing should be to provide workers with decent levels of wages to ensure the satisfaction of their basic needs as well as those of their families, the Committee requests the Government to consider, in consultation with the social partners, all appropriate measures with a view to protecting the purchasing power of the minimum wage in relation to a basic basket of essential consumer goods.

Part V of the report form. Application in practice. While noting the statistical information concerning the number of inspection visits in the period 2009–12, the Committee requests the Government to continue to provide detailed information on the practical application of the Convention, including inspection results and copies of official reports and studies such as activity reports of CONASAMI and the National Mixed Committee on the Protection of Wages (CONAMPROS), as well as any other official document addressing minimum wage policy issues.

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Article 5 of the Convention and Part V of the report form. Application of the Convention in practice. The Committee notes the information provided by the Government in its report concerning the mandate, composition and activities of the National Minimum Wage Commission and its supreme body, the Council of Representatives. It also notes the data provided by the Government concerning fluctuations in minimum daily wages in the various geographical areas during the period between 1 January 2002 and 31 December 2007. The Committee notes that, under the terms of a resolution adopted by the National Minimum Wage Commission, the general minimum wages in force since 1 January 2007 are, respectively, 50.57, 49.00 and 47.60 pesos (or around 4.62, 4.48 and 4.35 US dollars) a day in the three geographical areas of the country. It also notes that occupational minimum wages of a higher rate have been determined for 86 categories of workers. However, the Committee notes that it is the position of the workers’ representatives on the National Minimum Wage Commission that they agreed to sign the above resolution so as not to further worsen the economic situation of workers, while conveying their awareness of the fact that the percentage increase decided upon does not adequately protect the purchasing power of workers paid at the minimum wage rate and does not meet their needs, as prescribed by Article 123(VI) of the Constitution. The Committee notes in this respect that, under the terms of this provision of the Constitution, general minimum wages shall be adequate to meet the normal needs of a head of family in material, social and cultural terms, and to permit her or him to provide for the compulsory education of her or his children, and that minimum occupational wages have to be determined also taking into account the situation of the various branches of economic activity. The Committee requests the Government to specify the extent to which and the manner in which account was taken, in determining the level of the various minimum wages, of the criteria enumerated in the Convention, such as the needs of workers and their families, taking into account the general level of wages in the country and the cost of living.

The Committee further notes that, between 1 January 2002 and 30 June 2007, there were 57,135 ordinary inspections relating to general conditions of work in enterprises subject to the federal jurisdiction and that no infringement of the legislation in the fields covered by the Convention was reported through these inspections or through complaints by workers. It further notes that the Federal Conciliation and Arbitration Commission has not had claims before it relating to issues covered by the Convention. The Committee also notes that, during the period covered by the Government’s report, the Office of the Federal Defender of Workers’ Rights (PROFEDET) did not intervene to represent workers in judicial procedures relating to issues covered by the Convention. The Committee nevertheless understands, inter alia, from a reading of a study by the World Bank on the impact of minimum wages in Mexico, that the minimum wage legislation is still broadly ineffective both in the formal sector and the informal economy. The Committee therefore requests the Government to continue providing information on the application of the Convention in practice, including on the outcome of inspections, procedures before the Federal Conciliation and Arbitration Commission and the action taken by the PROFEDET in relation to compliance with statutory minimum wages.

The Committee also notes the information provided by the Government concerning the establishment, on 22 December 2000, of the Advisory Committee for the Modernization of the Minimum Wage System. It notes that the Advisory Committee’s mandate was to: (a) identify as precisely as possible the number, location, fields of activity and socio-economic characteristics of employed persons receiving the minimum wage; (b) propose the necessary modifications so that the National Minimum Wage Commission and its Council of Representatives can discharge their technical functions with the greatest possible objectivity and effectiveness; and (c) propose the basis or elements of a wage policy allowing a progressive and lasting increase in minimum wages in real terms in a context of economic growth and the containment of inflation. It notes that the Advisory Committee undertook its work between the months of January and August 2001 and included three representatives of workers, three representatives of employers, a representative of the Bank of Mexico and a representative of the Secretariat of Finance and Public Credit. It further notes that, in fulfilling its mandate, the Advisory Committee convened a number of round table meetings which included the participation of representatives of various universities, the National Institute of Statistics, Geography and Information Technology, the National Population Council and officials from the ILO Office for Mexico and Cuba. With regard to the outcome of its work, the Committee of Experts notes that the Advisory Committee reached consensus on the need for knowledge of the economic, social and demographic characteristics of workers receiving the minimum wage. It further notes that the Advisory Committee agreed to modify the distribution of the material and human resources engaged in the formulation of the price index for the families of workers receiving the minimum wage in the metropolitan area of the City of Mexico with a view to conducting studies on the cost of living and the socio-economic situation of the families concerned. The Committee requests the Government to provide any relevant information on the tangible outcomes of the work of the Advisory Committee for the Modernization of the Minimum Wage System and, where appropriate, to supply copies of the reports published by the Advisory Committee. The Government is also requested to provide information on any measure adopted to give effect to the recommendations made by the Advisory Committee.

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The Committee notes the detailed report provided by the Government in reply to its previous comments on the application of the Convention in practice. The Committee notes in particular the statistics on the evolution of the daily rates of minimum wages by occupational category and geographic region for the period 1998-2002, as well as the changes in the minimum monthly wage for the agricultural sector. The Committee also notes the information concerning the number of inspections carried out during the same period, and the sanctions imposed, in the form of both fines and prison sentences, as envisaged by the Federal Employment Act for violations of minimum wage provisions. The Committee requests the Government to continue providing information on the manner in which the Convention is applied, in accordance with Article 5 and Part V of the report form, particularly on the means of enforcement and the results obtained, for example, the number of violations reported, the types of sanctions imposed, etc.

The Committee notes that, by the resolution of 22 December 2000, the National Minimum Wage Commission created the Advisory Committee for the modernization of the minimum wage system, the objectives of which include, among others, proposing the necessary modifications for the National Minimum Wage Commission to carry out its technical tasks more efficiently and objectively. In this regard, the Committee requests the Government to provide detailed information in its next report on the mandate, composition and activities of the new Advisory Committee.

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The Committee notes the detailed information provided by the Government in response to its previous comments relative to the measures adopted to adjust minimum wage rates to the obligations arising out of the Government's economic policies within the framework of the various agreements and alliances (PECE, PBEC, AC) concluded between the Government and the social partners and to maintain, amongst other things, the purchasing power of these wages.

The Committee requests the Government to continue to provide, in accordance with Article 2 , paragraph 1, of the Convention, read in conjunction with Article 5 and point V of the report form, general information with regard to the practical application of the Convention, including its application in the agricultural sector, for example: (i) the adjustment of the minimum wage rates in force; (ii) the relevant statistical data concerning the number and different categories of workers covered by the regulation governing minimum wage rates; (iii) the report of the inspection services (for example: the violations observed, sanctions imposed, etc.).

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The Committee notes the detailed information supplied by the Government in its report and the attached statistical data.

Articles 3 and 4 of the Convention. The Committee notes the measures which have been adopted in order to permit, inter alia, the determination of minimum wages within the context of the Economic Solidarity Pact and the Pact for Stability and Economic Growth, which bear witness to a vast concerted effort by the federal Government, employers, employees and rural workers in the context of a policy of structural adjustment, taking into account the elements provided for in Article 3 of the Convention. The Government's report shows that the representatives of organizations of employers and workers were consulted concerning the application of methods for fixing and adjusting minimum wages.

The Committee requests the Government to continue supplying information on minimum wage fixing and, in particular, to indicate the measures which have been adopted so that the purchasing power of statutory general minimum wages and of minimum wages fixed by geographical zones can be regained.

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With reference to its previous comments, the Committee notes the information supplied by the Government on its general observation of 1985, and on the changes made in in the minimum wage-fixing system, trends in minimum wages over recent years, the national economic situation and its influence on the regularity with which minimum wages are fixed and their amounts. The Committee also notes the information supplied concerning the powers, duties and activities of the labour inspection services.

Taking into account the information supplied by the Government concerning the economic situation of the country and the action that has been taken, among other purposes, to preserve the minimum level of purchasing power of workers' wages, the Committee requests the Government to continue supplying information on the regularity with which minimum wages are fixed and the measures that have been taken to preserve the minimum level of their purchasing power, taking into account the various points set forth in Article 3 of the Convention which aim to guarantee adequate protection for groups of workers in disadvantageous situations.

In view of the fact that the Government only supplies information concerning the work of the labour inspection services in the Valle de Mexico, the Committee requests the Government to supply more information on the work of the labour inspection services (inspection visits, violations reported and penalties imposed) in other parts of the national territory in accordance with Part V of the report form.